Pennsylvania Real Estate Market: When Will My Home Value Return?

Home Mortgage Resources
- Don't be a victim of SCAM! Mortgage Fraud, Scandal and Scams. Current Mortgage Crisis Help!

NEED
TO KNOW - MORTGAGE INFORMATION

Departments:

Home Buyers:

Home Owners:

Additional Information:

Pennsylvania Real Estate Market: When Will Home Values Return?

It’s not all bad news for Pennsylvania homeowners. Although Pennsylvania has been plagued with decreasing home values, an increase in foreclosures and the tight lending standards like nearly every other part of the country, its ability to bounce back has put it among one of just a few states that can be called a top housing market in 2010.

A Top Housing Market

In Housing Predictor’s annual list of top housing markets, two of PA’s largest markets, Philadelphia and Pittsburgh, rank #22 and #25, respectively. Philadelphia home values are predicted to increase by 2.7 percent this year, and Pittsburgh’s home values are expected to increase by 2.3 percent.

The Fiserv Case-Shiller Analysis shows that home prices peaked in the second quarter of 2007 in Pennsylvania. It also predicts that home values will return to this area of the country in the first quarter of 2013. When considering other areas of the country, such as Florida where home prices are not expected to return until 2039, this is definitely great news for homeowners in the Keystone State.

If you are a homebuyer, you are in luck, too. Low interest rates and a healthy supply of homes on the market have made purchasing a home this year quite beneficial. If you are a home seller, or a home owner looking to refinance, now may also be a good time as home values begin to make their way up instead of down.

Foreclosure Rate Lower than National Average

Foreclosures, like nearly every other part of the country, still plague the Pennsylvania real estate market. The national average for both troubled properties and foreclosures stands at 13.2 percent. Pennsylvania is quite a bit lower at 10.7 percent, but is clearly still inundated with foreclosures. In contrast, however, other parts of the country have many more issues with foreclosures. California is currently dealing with a 15 percent foreclosure rate, while Illinois has 14 percent of its properties either in pre-foreclosure or foreclosure.

The national average for delinquent FHA loans (which includes foreclosures) is 17.4 percent. Pennsylvania delinquent FHA loans stand at 15.3 percent, which is slightly below the national average.

In conclusion, if you are a buyer in Pennsylvania, you will enjoy lower home prices and a large supply of homes from which to choose. If you are a homeowner, you can expect home values to recover fully in the first quarter of 2013.